- CubicFarm Systems Corp. (CUB) has closed its overnight marketed public offering
- The offering consisted of 6,540 unsecured convertible debenture units of the company and 7,361,000 common shares of the company
- The combined total gross proceeds were $10,588,550, which included the partial exercise of the over-allotment option
- The net proceeds of the offering will be used to support working capital, research and development and business development
- CubicFarms is a leading local chain agricultural technology company developing and deploying technology to feed a changing world
- CubicFarm Systems Corp. remained unchanged at $0.52 at 11:10 AM ET
CubicFarm Systems (CUB) has closed its overnight marketed public offering.
The offering consisted of 6,540 unsecured convertible debenture units of the company and 7,361,000 common shares of the company.
The unsecured convertible debenture units were offered at a price of $1,000 per debenture unit for total gross proceeds of $6,540,000. The common shares were offered at a price of $0.55 per common share for total gross proceeds of $4,048,550.
The combined total gross proceeds were $10,588,550, which included the partial exercise of the over-allotment option.
Each offered debenture unit consisted of: (i) a $1,000 principal amount 8 per cent convertible unsecured debenture maturing five years from the closing of the offering; and (ii) 400 common share purchase warrants, with each warrant entitling the holder thereof to acquire one common share of the company at $0.71 per share for a period of 36 months ending June 2, 2025.
A total of 6,540 convertible debentures and 2,616,000 warrants were issued.
The convertible debentures are convertible at the holder’s option into fully-paid, non-assessable and freely tradable common shares at any time prior to the earlier of the last business day immediately preceding the maturity date and the last business day immediately preceding the date fixed for redemption by the company at a conversion price of $0.68 per share.
The conversion price represents a conversion premium of approximately 20 per cent to a reference price of $0.55 per common share.
The net proceeds of the offering will be used to support working capital, research and development and business development.
CubicFarms is a leading local chain agricultural technology company developing and deploying technology to feed a changing world.
CubicFarm Systems Corp. remained unchanged at $0.52 at 11:10 AM ET.
